- JP Morgan could possibly be investing $20 million in Ethereum’s ConsenSys for the merger with Quorum, its blockchain development unit.
- In 2019, JP Morgan’s blockchain unit designed the JPM Coin, a digital coin that makes instant transfer using blockchain technology.
- ConsenSys has been involved in several Quorum based projects like Aura LVMH or Komgo.
Rumour mills have been active in the Ethereum space. This time around, there have been discussions that JP Morgan is now looking to invest close to investing $20 million in Ethereum development firm ConsenSys is in progress and may materialise soon. According to The Block, anonymous sources have revealed that discussion regarding JP Morgan’s investment could be a part of the total investment deal worth $50 million. They also added that ConsenSys is contemplating a merger with JPMorgan’s blockchain development unit Quorum to take over support and maintenance aspects.
JP Morgan’s Bockchain Journey
Only last year, JPMorgan’s blockchain unit came up with its pathbreaking innovation of JPM Coin: the first-ever stable coin by a bank. Additionally, Quorum blockchain also constitutes the banking giant’s Interbank Information Network (IIN), which has now expanded to 320 banks and enables the exchange of payment data on a global scale. Going by such latest developments, it appears that JPMorgan is likely to benefit from ConsenSys’ innovative offerings. Recently, Oli Harris [MS1], JP Morgan’s Head of Digital Asset Strategy and Quorum, switched to Goldman Sachs just weeks ago, indicating the deal being at an advanced stage.
ConsenSys and the Ethereum Blockchain
Joe Lubin, the founder of ConsenSys , was one of the earliest proponents of Ethereum and ever since, the firm has been primarily funded using Lubin’s Ethereum money. However, there have been multiple episodes of downsizing of late, including a 14% staff cut in April. Given these factors, the deal with JP Morgan could be a part of ConsenSys’ financial revival strategies. Currently, the company focuses on enterprise blockchain consulting, solutions and products for the public Ethereum blockchain.
Notable Quorum Projects
The Ethereum development unit has also worked on notable Quorum-based products before, including Aura LVMH blockchain designed to counteract counterfeit luxury goods or the Quorum-based commodity trading network called Komgo. One of the ConsenSys incubated projects was Pegasys, which initiated the open-source enterprise blockchain Hyperledger Besu, and if Quorum is taken over by ConsenSys, future rationalization of Quorum and Besu could be on the cards as well.
As per a CNF report, even conventional banking institutions that initially dismissed the crypto industry seem to be now collaborating with the same, and JPMorgan’s investment in ConsenSys would be another indicator of the growing interest of the traditional market in Blockchain technology and cryptocurrencies. As the crypto-verse is on the verge of entering the Ethereum 2.0 phase, it would be interesting to note how things shape up.